Can selling insurance make you a millionaire?
Strong earning potential
Some agents, advisors, and multi-line agents made a million dollars in the first year they worked with us selling life insurance! While most of the others it took 2, 3, or more years to make a million dollars per year selling life insurance. (We are not recruiters.
It isn't the most glamorous profession, and it often gets associated with pushy salespeople that force their products down your throat. But here is the reality: there is a lot of money in the money business! The financial services industry has created more millionaires than any other industry.
While there are many kinds of insurance (ranging from auto insurance to health insurance), the most lucrative career in the insurance field is for those selling life insurance.
Yes, selling insurance can be a good career for independent workers with strong sales skills. Sales agents often earn bonuses and commission, so their income potential depends on their talent.
One of the primary reasons insurance agents can accumulate wealth is their commission-based income structure. Unlike salaried employees, agents earn a percentage of the premiums they sell to clients. As they build a client base and generate more sales, their income potential increases.
Selling insurance can be a lucrative proposition, with relatively high-paying commissions and a high degree of autonomy with flexible work hours. However, it is not an easy job. You can expect a high rate of customer rejection, stress, and attrition rate.
One of the biggest reasons that insurance agents quit is the fact that they have unrealistic expectations. The insurance industry is huge, which leads many people to think they can easily make a large income by selling insurance.
PERCENTILE WAGE ESTIMATES (INDEPENDENT INSURANCE AGENTS) | ||
---|---|---|
25th | $48,000 | $4,000 |
Average | $89,745 | $7,478 |
75th | $109,500 | $9,125 |
Top earners | $200,000 | $16,666 |
Is Selling Life Insurance a Good Way to Make Money? You can make a good living selling life insurance, especially if you continue to earn commissions on policies you have already sold. However, it is not an easy career, as it requires constantly working to find leads, build relationships, and make sales.
What is the hardest type of insurance to sell?
- Selling life insurance is one of the hardest things I've ever done in my life. ...
- Nobody likes talking about their own death. ...
- I make a point of reminding my clients and prospects of this very fact. ...
- This is an extra skill that life insurance sales people need to have, and it's very, very hard to cultivate.
- Loan processor. ...
- Insurance adjuster. ...
- Insurance agent. ...
- I nsurance broker. ...
- Loss control consultant. ...
- Underwriter. ...
- Actuary. ...
- Risk manager.
Insurance Sales Agents made a median salary of $57,860 in 2022. The best-paid 25% made $81,970 that year, while the lowest-paid 25% made $40,030.
- Benefits of a career in life insurance. ...
- Diverse professional opportunities. ...
- High earning potential. ...
- Job security. ...
- Disadvantages of a career in life insurance. ...
- Unstable income. ...
- Difficulty in finding leads. ...
- Tasks can be monotonous.
Insurance agents succeed when they prioritize their customers' needs over their own profits. The most commonly cited reason insurance agents fail is that they fail to listen to their customers and take the time to find the best product to suit their needs.
The highest-paid insurance agent is Gideon du Plessis.
He earns an annual commission amounting to $70 million. A record he has maintained over the last 12-14 years, selling 700 policies yearly.
Most businesses don't make any profit in their first year of operating. It could take anywhere from 18 to 24 months for your insurance sales to actually provide profit. Don't feel discouraged. Every small business owner has to clear this hurdle.
Unpredictable Income
While the insurance industry is stable and the income is lucrative, it can sometimes be hard to plan ahead and know where your next paycheck will come from, since your income may be solely based on sales made. To succeed in this field, you must be a go-getter.
That is a 90% failure rate for new agents.
Most independent marketing organizations will train insurance agents on all the products they want them to sell. Then the independent marketing organization will train the insurance agent to ask a few questions and learn a sales presentation that just sells a product.
- Analytical skills. Insurance sales agents must evaluate the needs of each client to determine the appropriate insurance policy.
- Communication skills. Insurance sales agents must listen to clients and be able to clearly explain suitable policies.
- Initiative. ...
- Interpersonal skills. ...
- Self-confidence.
What percentage of insurance agents quit?
The burnout rate for life insurance sales agents is high. More than 90% of new agents quit the business within the first year. The rate increases to greater than 95% when extended to five years.
Being an insurance agent is a great career choice, but that doesn't mean it's always easy. Slow sales, angry clients, and tight deadlines can all lead even the most successful agent to feel exhausted and unproductive — in other words, feeling burnt out.
People like being insurance agents because it allows them to build relationships with clients, provide valuable protection, and earn a competitive income. Additionally, helping clients secure their financial future can be rewarding and fulfilling.
- Texas. ...
- Massachusetts. ...
- New York. Total insurance agent jobs: 1,076. ...
- Colorado. Total insurance agent jobs: 700. ...
- Oregon. Total insurance agent jobs: 549. ...
- Hawaii. Total insurance agent jobs: 95. ...
- Mississippi. Total insurance agent jobs: 280. ...
- Arizona. Total insurance agent jobs: 891.
Owning an insurance agency offers unlimited income potential. Your earnings are directly tied to your sales and the performance of your agency. Insurance agencies typically earn commissions and bonuses from insurance carriers for policies sold, which means the more you sell, the more you earn.